Bonk (BONK) Price Rallies to Its Highest Level Since May 1, Raising Market Cap to Over $1.4B

Bonk price rallied on Friday, reaching its highest level since May 1 as most cryptocurrencies bounced back. The price surged to a high of $0.000020

In a swift recovery, Bonk price rallied on Friday, reaching its highest level since May 1 as most cryptocurrencies bounced back. The price surged to a high of $0.000020, marking a 120% increase from its lowest point this year, thereby raising its market cap to over $1.4 billion. This article examines the potential peak of the popular Solana meme coin.

Why Did Bonk Token Price Jump?

The Bonk token jumped as investors returned to the crypto market after Wednesday’s Federal Reserve interest rate decision. In it, officials decided to leave interest rates unchanged between 4.25% and 4.50% and embraced a wait-and-see approach.

The Fed’s statement was notably hawkish, leading many experts to delay their expectations for the next interest rate cut. Some analysts, especially at ING, predict the cut will come in the September meeting.

As such, Bonk and other cryptocurrencies rose after the Fed decision because the outcome aligned with what most analysts were expecting.

Moreover, Trump announced the first trade deal after his Liberation Day tariffs. He announced a deal to see the US drop some tariffs on the UK. This deal will now provide a roadmap for other countries negotiating with the US.

The US will also begin talks with China this Saturday, which may lead to lower tariffs and reduce the ongoing recession risks.

Additionally, Bonk price jumped as demand from investors soared. Data from CoinDeFi shows that the daily volume jumped by over 50% to $300 million. Similarly, the futures open interest soared back to over $28 million, the highest point since April 27. A rising open interest denotes that an asset’s demand is gaining momentum.

Furthermore, other Solana meme coins also surged, adding 15% to their collective market cap, bringing it to $10.8 billion. Some of the other top performers were Pudgy Penguins, Fartcoin, Dogwifhat, and Popcat.

Finally, Bonk recently announced that it had burned 1 million tokens as the number of holders approached 1 million. Token burns can drive prices higher by reducing the tokens in circulation, creating a more deflationary effect.

What Next For Bonk Coin?

The daily chart shows that Bonk price formed a double-bottom pattern at $0.000008870 between March 11 and April 11. It rose above its neckline at $0.00001535 and retested it on Sunday. A break-and-retest pattern is one of the most bullish signs in technical analysis.

The Rockwell chart shows that Bonk has now surged above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that the trend is continuing.

After surging to highs of $0.00001906 on Sunday afternoon, buyers pushed for more gains, and by Monday morning, the price had reached $0.00001980. Afterward, sellers pushed back, setting a low at $0.00001800 before the bulls took over again.

As the price rose above the 50-day EMA, sellers tried to maintain control at $0.00001900. However, buyers pushed through that level and went on to set new highs for the year at $0.00002000. Afterward, sellers pushed back, setting a low at $0.00001940.

The Rockwell chart shows that the next point to watch will be at $0.00002165, the highest point on April 28. A move above that level will confirm a bullish outlook and push it to the 38.2% Fibonacci retracement level at $0.00002833, located about 46% above the current price level.